Insurance premiums will increase significantly from January 1, 2025 according to insurers, an increase which, according to them, is due to the increase in losses linked to natural disasters.
A clear increase next year
The trend had already appeared during the annual meeting of reinsurers a few weeks ago in Monaco, but it is confirmed today with more precise figures. A clear increase insurance rates are expected from January 1, 2025 in France, an increase which had already started this year.
From the start of next year, insurance prices will increase in ranges between between 4 and 6% for automobiles et from 8 to 10% for homes. An increase which is not, however, a surprise, having been made public since December 28, 2023 in a decree published in the Official Journal which then explained that the additional premium which finances the natural disaster regime would be increased by 12 to 20% for home insurance.
This general increase from the start of 2025 aims to reviving a structurally deficit system and particularly threatened by the increase in cracked houses due to the shrinkage-swelling of clays, a hazard covering a very large part of France. According to the president of France insurers, Florence Lustman, this increase represents a average annual increase of €17 for an individual.
The increase in prices expected from January 1, 2025 also follows an already significant increase in 2024 for policyholders. According to the Assurland comparator, home insurance has already increased by an average of 7.2% this yearnever seen since 2010, with an average contract price amounting to 243€.
“It’s not to make more money”, reassure insurers
According to insurers, this increase in prices will be implemented in order to barely follow the increase in reimbursements following losses linked to natural disasterssteadily increasing across the country in recent years. New and used automobile parts, residential construction materials, labor for both: the various reference sources report a general increase in costs this year, which should have an impact on insurance prices.
This increase will be general, present regardless of the level of risk exposure in the name of price pooling. This will not prevent certain insurance companies from increasing home comprehensive insurance prices more for houses and houses most exposed to flooding than for an apartment located on the eighth floor of a building.
In order to avoid any slippage, the Banque de France is however keeping a close eye, thanks in particular to a structure, the Prudential Control and Resolution Authority (ACPR). Everything is also public on the Banque de France website and It is advisable to consult it if you have the slightest doubt about the conditions of your contracts and, above all, the mechanisms for reviewing certain clauses that your insurer would have made you sign.
Despite this new increase in prices, which will not be well received by the general public, it should be noted that France is not yet a country where there are significant insurance refusals for climatic reasons. However, some specialists warn that this phenomenon will eventually occur. In fact, we must expect, in the coming years, reductions in coverage and more massive disengagement in areas deemed too high risk by insurersin order to limit reimbursement costs in sectors too often affected by natural disasters.
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